Although econometricians routinely estimate a wide variety of statistical models, using many di. Pdf regression discontinuity designs in economics semantic. Regression discontinuity designs with sample selection. An economic approach to generalize findings from regression. This paper shows that much can be learned about average treatment e ects for the treated. Between prediction and criticism if you put two economists in a room, you get two opinions, unless one of them is lord keynes, in which case you get three opinions. Often access to, or incentives for participation in, a service or program is assigned based on transparent rules with criteria based on clear cutoff values, rather than on discretion of administrators. Regression discontinuity rd designs were first introduced by donald l. This paper provides an introduction and user guide to regression.
Cook argues the resurgence of the rd design in economics is unique as it is still rarely used in other disciplines. Including covariates in the regression discontinuity design. Oct 26, 2012 brian mccall presents regression discontinuity design. I linear on x, we can think this as linear on its unknown parameter, i. Economic behavior and the regressiondiscontinuity design. Regression discontinuity design in economics article in journal of economic literature 482. The iza institute of labor economics is an independent economic research institute that conducts research in. Rd designs as local randomized experiments and the manipulation problem. Hall qa, jacques mairesseb department of economics, university qf california, berkeley, ca 94720, usa binsee. In regression discontinuity rd designs for evaluating causal effects of interventions, assignment to a treatment is. Regression discontinuity designs in economics econpapers. Regression discontinuity designs in economics pdf regression discontinuity designs in economics. From its inception the design has been termed quasiexperimental, re. Introduction one view of economics is that it is a predictive science, with the goal of.
A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. An economic approach to generalize findings from regression discontinuity designs nirav mehta november 6, 2015 abstract regression discontinuity rd designs estimate treatment e ects at a cuto. A practical introduction to regression discontinuity. Testing stability of regression discontinuity models, by giovanni cerulli, yingying dong, arthur lewbel and alexander poulsen. Linear equations with one variable recall what a linear equation is. Request pdf regression discontinuity design in economics this paper provides an introduction and user guide to regression discontinuity rd designs. Concepts are discussed using examples drawn from the growing body of empirical research using rd. Regression discontinuity designs in economics nber. Regression discontinuity designs in economics by david s. Manipulation of the running variable in the regression discontinuity design. It presents the basic theory behind the research design, details when rd is likely to be valid or invalid given economic incentives.
A history of the regressiondiscontinuity design in psychology, statistics, and economics, journal of econometrics 142 2008, 636654. Since the late 1990s there has been a large number of studies in economics applying. Regression discontinuity designs with clustered data, by otavio bartalotti and quentin brummet. Rd designs can be invalid if individuals can precisely manipulate the assignment variable.
The test is implemented as a wald test of the null hypothesis that the discontinuity is zero. In the srd design the assignment w i is a deterministic function of one of the. Econometric issues at the university of texas at dallas as part of the seminar series for the texas. The estimator, which is a simple extension of the local linear density estimator cheng et al. The regression discontinuity rd data design is an evaluation design that was. The proposed test is based on an estimator for the discontinuity at the cutoff in the density function of the running variable. A density test, mccrary, journal of econometrics 2008 regression discontinuity designs. Evidence from satellite data on lights at night maxim l. Extensions cattaneo, idrobo, and titiunik, forthcoming, our goal is to provide an accessible and practical guide for the analysis and interpretation of rd designs that encourages the use of a common set of practices and facilitates the accumulation of rdbased empirical evidence. Regression discontinuity designs in economics 283 assigned to individuals or units with a value of x greater than or equal to a cutoff value c. I exploit a previously unstudied reform to bank branching policy in india, which led to a large expansion in private credit to nancially underserved areas. Lee and thomas lemieux this paper provides an introduction and user guide to regression discontinuity rd designs for empirical researchers.
A guide to practice, imbens and lemiux, journal of econometrics 2008. Hoover first draft, 3 january 2005 revised, 15 february 2005 department of economics university of california one shields avenue davis, california 966168578 u. Regression discontinuity designs in economics assigned to individuals or. Joe journal of econometrics the regression discontinuity. Regression discontinuity design department of economics. Regression discontinuity designs in economics david s. Manipulation of the running variable in the regression. Regression discontinuity designs vancouver school of economics. Most downloaded journal of econometrics articles elsevier. Age of clock 1400 1800 2200 125 150 175 age of clock yrs n o ti c u a t a d l so e c i pr 5. Abstract this paper provides an introduction and user guide to regression discontinuity rd designs for empirical researchers.
Frandsen, markus frolich and blaise melly journal of econometrics, 2012, vol. The regression discontinuity design rdd is a quasiexperimental design that estimates the causal effect of a treatment when its assignment is defined by a threshold value for a continuous. The economics and econometrics of innovation an overview david encaoua, bronwyn h. Theory and practice, by david card, david lee, zhuan pei and andrea weber. Introduction a regression discontinuity rd design is a powerful and widely applicable identification strategy.
Bootstrap confidence intervals for sharp regression discontinuity designs with the uniform kernel, isu general staff papers 201605010700001003, iowa state university, department of economics. Thistlethwaite and campbells original article concerned the evaluation of the impact of receiving a national merit award on students success in obtaining additional college scholarships and on their career aspirations. A brief guide to r for beginners in econometrics mahmood arai department of economics, stockholm university first version. Quantile treatment effects in the regression discontinuity design. It may be pointed out that the econometric methods can be used in other areas like engineering sciences, biological sciences, medical sciences, geosciences, agricultural sciences etc. Published in volume 48, issue 2, pages 2855 of journal of economic literature, june 2010, abstract. The factors, being estimated from the high dimensional data, can help to improve forecast, provide e cient instruments, control for nonlinear unobserved heterogeneity, etc. Akramov ifpri, washington, dc, usa training course on applied econometric analysis. C1,h0,i0,j0 abstract this paper provides an introduction and user guide to regression discontinuity rd designs for empirical researchers. Farnsworth october 26, 2008 this paper was originally written as part of a teaching assistantship and has subsequently become a personal reference. Regression discontinuity designs in economics american. Regression discontinuity design in economics request pdf.
In the sharp rd design this variable fully determines the treatment according to the. The regression discontinuity designtheory and applications. This paper provides an introduction and user guide to regression discontinuity rd designs for empirical resear. Evidence from a regression discontinuity analysis in india nathaniel young abstract this paper investigates the e ects of formal banking expansion on economic growth. In other countries, such as the us, however, starting school early or late or being held back or accelerated is much more common. The regression discontinuity design rdd, introduced by thistlethwaite and campbell 1960, has surged in popularity among applied economists. This paper provides an introduction and user guide to regression discontinuity rd designs for empirical researchers. Lemieux regression discontinuity designs in economics journal of economic literature, june 2010. Including covariates in the regression discontinuity design iza. Citescore values are based on citation counts in a given year e. Journal of econometrics, 1422, february 2008, pages 698. Citations of regression discontinuity designs in economics. We introduce a nonparametric estimator for local quantile treatment effects in the regression discontinuity rd design.
Simple linear regression slr introduction sections 111 and 112 abrasion loss vs. Econometric model i in general, the mathematical equations are written for the whole population, and in econometric analysis, we almost always deal with sample data. Regression discontinuity designs in economics princeton university. In regression discontinuity rd designs for evaluating causal effects of interventions, assignment to a treatment is determined at least partly by the value of an observed covariate lying on either side of a. I learned most of this stu by trial and error, so it may contain ine ciencies, inaccuracies, or incomplete explanations. Regression discontinuity designs in economics, journal of economic literature, american economic. Hall, francois laisney, and jacques mairesse during the past few decades, the interest of economists in the sources of long run economic growth has led an increasing number to focus their attention on the role of innovation in creating that growth. Regression discontinuity rd analysis is a rigorous nonexperimental1 approach that can be used to estimate program impacts in situations in which candidates are selected for treatment based on whether their value for a numeric rating exceeds a designated threshold or cutpoint.